Discuss, Using Examples, How the Relationship Between Operations in a Supply Chain Can Affect Way the Chain Works.
Discuss, using examples, how the relationship between operations in a supply chain can affect way the chain works.
Supply chains are an important factor in the running of a company. A lot of business decisions can be based on how well the supply chain is flowing. The relationship between different operations within a supply chain can have a huge impact on the way the chain works, depending on how well these relationships are managed. This is why companies try to practice good supply chain management. This essay is going to be looking at supply chains and analysing the way in which the relationship between the different operations can affect the way they work.
Supply chains are a system of organisations, people, technology, activities, information and resources involved in moving a product or service, through many stages of operation, to the customers. ‘All operations rely on the efficient movement of people, information and materials.’ (Waters, 1999 p. 186). Each link in the supply chain is closely connected. Slack (Chambers and Johnston, 2007, p. 706) describes a supply chain as ‘a linkage or strand of operations that provides goods and services through to end consumers.’ A supply chain can start from a point as simple as an electrical component supplier. This is known as a first level supplier. The electrical component supplier will have a relationship for instance with a circuit board maker, which would be a second level supplier. The circuit board maker will could have a purchasing relationship with several different first-level suppliers that they will need to purchase all the parts in order to make the circuit board. A computer company could then have a close relationship with the circuit board maker and other suppliers of the components needed in order to make build their computers. The supply chain finally ends when you get to the consumer who is purchasing the product from the stores. It is important that all these links between the connections
Supply chains are an important factor in the running of a company. A lot of business decisions can be based on how well the supply chain is flowing. The relationship between different operations within a supply chain can have a huge impact on the way the chain works, depending on how well these relationships are managed. This is why companies try to practice good supply chain management. This essay is going to be looking at supply chains and analysing the way in which the relationship between the different operations can affect the way they work.
Supply chains are a system of organisations, people, technology, activities, information and resources involved in moving a product or service, through many stages of operation, to the customers. ‘All operations rely on the efficient movement of people, information and materials.’ (Waters, 1999 p. 186). Each link in the supply chain is closely connected. Slack (Chambers and Johnston, 2007, p. 706) describes a supply chain as ‘a linkage or strand of operations that provides goods and services through to end consumers.’ A supply chain can start from a point as simple as an electrical component supplier. This is known as a first level supplier. The electrical component supplier will have a relationship for instance with a circuit board maker, which would be a second level supplier. The circuit board maker will could have a purchasing relationship with several different first-level suppliers that they will need to purchase all the parts in order to make the circuit board. A computer company could then have a close relationship with the circuit board maker and other suppliers of the components needed in order to make build their computers. The supply chain finally ends when you get to the consumer who is purchasing the product from the stores. It is important that all these links between the connections